Techrights

Circular Financing in NVidia (NVidia Pays Its Clients to Buy From NVidia) and "Lessons From the Dotcom Crash"

Posted by Roy Schestowitz on Nov 28, 2025

Same thing Microsoft does with Azure while Microsoft's debt surges very fast. They 'invent' capital that does not even exist! Also see: NVidia is a Bubble | The GPU Bubble (GPUs Marketed by Useless Slop)

Published yesterday about the Bubble Company:

From this article: "...stellar numbers and confident remarks failed to reassure investors, who are increasingly skeptical of Nvidia’s ability to justify a market capitalization that last month crossed the unprecedented $5 trillion mark. Their concerns are not about current demand — AI giants are still spending heavily to build out their infrastructure — but about the long-term viability of a model based on investments whose profitability remains uncertain. [...] Circular Financing These investments often come with commitments to buy GPUs. Some observers see this as a risky strategy, leading to a massive circular-financing loop in which money flows out only to return in another form. Critics argue the mechanism also allows Nvidia to artificially stimulate demand by funding its own customers, some of whom might not survive without its support. These companies “generate the majority of their revenue from third-party clients,” Nvidia counters. The memo also addresses depreciation, a point raised by Michael Burry. The investor argues that Nvidia’s customers underestimate GPU depreciation in their accounting, spreading write-downs over five or six years even though the chips rapidly become obsolete. Such a practice, which softens the immediate financial impact of investments, could become a time bomb that would eventually hit Nvidia itself. The company responds that its older chips are still widely used."

More links got sent to us today regarding the "AI bubble", citing Krugman's "Warning: The Fed Can't Rescue AI - Lessons from the dotcom crash". He previously wrote about the Department [sic] of Government Efficiency, saying that it "Was a Harbinger of Trump's Assault on Decency and Privacy" and "Democrats will have to repair the damage" (Paul Krugman is assuming that the two-party system still works; both parties serve overlapping financial interests and vary on superficiality).

Fake Economy and Fake Savings

The US economy is mostly fake (money that does not exist [1, 2] but which the corporate media tries to fool us into believing does exist).

The right-wing media (The Daily Caller) still insists that this fake "Department" just "Isn't Dead Despite The Media Hysteria". It says: "The Department [sic] of Government Efficiency (DOGE) is still up and running, despite recent reports stating the agency had quietly been disbanded, an administration official told the Daily Caller."

MElon's @DOGE account in his own platform (X.com) has said: "As usual, this is fake news from @Reuters. President Trump was given a mandate by the American people to modernize the federal government and reduce waste, fraud and abuse. Just last week, DOGE terminated 78 wasteful contracts and saved taxpayers $335M."

They make a lot of people and whole families (through unemployment) dependent on government handouts. Does that save anything?

Attack on Citizens' Dignity and Freedom of Thought

A reader has meanwhile sent some older articles about likely illegality of this fake 'department', citing "Cybersecurity, government experts are aghast at security failures in DOGE takeover" by Derek B. Johnson (February 4, 2025) and saying this "takeover of key systems across the federal government is ignoring decades of laws, regulations and procedures, experts told CyberScoop."

On April 15, 2025 - before it was destroyed some more - NPR offered "[a] whistleblower's disclosure details how DOGE may have taken sensitive labor data" (to be weaponised politically).

Social breakdown in the US seems imminent, hence deployment of troops domestically (under the guise of "national security", "war on crime", and National Guard topped up with actual Marines, trained to kill, not to protect civilians). The President is willing to throw all his European allies under the bus (appeasing the invaders) to distract from his - and his friends' - role in the Epstein-led underage sex trips.

"Quiet, Piggy." █